The Gurugram-based non-banking financial company will use the funds to further diversify its lending portfolio.

The company said its customised appraisal techniques for each industry and cluster help it serve a vast number of customers who fall out of the purview of traditional financing due to strict and non-flexible credit norms.

A recent report by rating agency Icra said Aye Finance identifies business clusters and performs a preliminary market research to understand the dynamics of the cluster by interacting with buyers, suppliers and manufacturers. Once a cluster is selected, the company opens a branch and starts lending to that cluster.

Aye Finance was founded in 2014 by Sanjay Sharma and Vikram Jetley, both former executives of Ujjivan Financial Services, the holding firm for Ujjivan Small Finance Bank. Aye Finance currently operates in 10 states with 72 branches.